Hotel Properties, Ong Beng Seng to acquire hotel in Italian Dolomites

HOTEL Properties Limited (HPL) plans to add another Italian hotel to its portfolio, this time from Italy's Dolomites region.

HPL Dolomites, which is 80 per cent owned by HPL Europe, has agreed to acquire 90 per cent of the corporate capital and voting rights in Alpina Dolomites SRL from Misam S.r.l. for 40.6 million euros (S$61 million), with a net working capital adjustment to be finalised later.

Alpina Dolomites is incorporated in Italy and owns the 5-star luxury hotel, Alpina Dolomites Hotel, Gardena Health Lodge & Spa located in Compatsch, Alpe di Siusi, Castelrotto, Bozen.

The balance 10 per cent of the corporate capital and voting rights of Alpina Dolomites will be retained by the current owners of Alpina Dolomites.

HPL Dolomites is a joint-venture company incorporated in the UK that is 80 per cent owned by HPL Europe, a wholly-owned subsidiary of HPL.

The other 20 per cent is owned by Como Holdings (Europe). Como is beneficially owned by Ong Beng Seng, the managing director and substantial shareholder of HPL.

The purchase consideration was negotiated at arm's length on a willing buyer willing seller basis, taking into consideration the trading performance of the business and hotel activities, HPL said.

The acquisition will be funded by way of internal funds and bank borrowings.

HPL shares rose S$0.19 or 5.34 per cent to S$3.75 on Tuesday.